The aim of this paper is to discuss the application of ethanol-dissolved lignin in preparing high value products. Lignin was extracted from wheat straw by ethanol and used to prepare water-based UV-curable polyurethane. The preparation of water-based UV-curable polyurethane was completed by a three-step reaction. Besides lignin, toluene- 2, 4- diisocyanate (TDI), dimethylolpropionic acid (DMPA), 2-hydroxyethyl acrylate (HEA) and polyether glycol (PPG) were used. The effect of lignin content on the synthesis process was studied. The prepared lignin polyurethane was neutralized with tertiary amine (TEA) and dispersed in water. The properties of the final product, for example, rheological property, average particle size, UV-curing ability and mechanical property, etc. were characterized. Results indicated that the lignin polyurethanes could cure quickly and the presence of lignin with a proper proportion during the synthesis had a positive effect on the tensile strength of cured film.